2 weeks Ago By Nnamdi Ezekute
Nigeria’s sports betting industry, once a booming multi-billion-naira sector, is now struggling under the weight of a faltering economy, spiraling inflation, and a volatile currency. According to Yahaya Maikori, President of the Nigeria E-Sports Federation and founder of Global Gaming Company Ltd., the dollar-dependent economy is choking operators, who now face steep costs for essential software services.
“Operators who paid $5000 for software four years ago, when $1 was about 600 naira, now have to pay the same $5000 at an exchange rate of 1600 naira. This significantly eats into their profit margins,” Maikori told . Beyond operators, punters are also grappling with inflation’s impact on disposable income.
“The assumption that customers have an insatiable appetite for betting may no longer hold when faced with the reality of meeting basic needs,” Maikori added. Though the challenges are real, Maikori remains optimistic. He sees this as a critical moment for innovation and industry consolidation.
“The strong will survive, while companies resistant to change will be crushed,” he said, advising operators to explore new gaming sub-sectors like poker and develop local software to reduce reliance on foreign services. Maikori also criticised the Nigerian government’s tax policies, warning that applying a blanket tax approach to the i-gaming industry could mirror the collapse of Kenya’s once-thriving sports betting market. “I think because tax is a good revenue stream for the government, they are oblivious about how tax regimes work.
The government is trying to drive whatever tax they can to bolster their coffers. In the i-gaming industry, we’ve had so many engagements with the government consultants, and they don’t seem to understand the pressing need to resolve the issue of a regulatory framework,” he stated..
